2024 First Quarter
Results
April 25, 2024
Forward-Looking
Statements
Various statements contained in this presentation, including those that express a belief, expectation or intention, as well as those that are not statements of historical fact, are forward-looking statements. These forward-looking statements may include, but are not limited to, statements regarding our strategy, projections and estimates concerning the timing and success of specific projects and our future production, land and lot sales, operational and financial results, including our estimates for growth, financial condition, sales prices, prospects, and capital spending. Forward-looking statements in this presentation are generally accompanied by words such as "estimate," "project," "predict," "believe," "expect," "intend," "anticipate," "potential," "plan," "goal," "target," "guidance," "outlook," "will," "future," "strategy," or other words that convey future events or outcomes. Forward-looking statements in this presentation speak only as of the date of this presentation, and we disclaim any obligation to update these statements unless required by law, and we caution you not to rely on them unduly. These forward-looking statements are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. The following factors, among others, may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements: the effects of general economic conditions, including employment rates, housing starts, interest rate levels, home affordability, inflation, consumer sentiment, availability of financing for home mortgages and strength of the U.S. dollar; market demand for our products, which is related to the strength of the various U.S. business segments and U.S. and international economic conditions; the availability of desirable and reasonably priced land and our ability to control, purchase, hold and develop such parcels; access to adequate capital on acceptable terms; geographic concentration of our operations; levels of competition; the successful execution of our internal performance plans, including restructuring and cost reduction initiatives; the prices and availability of supply chain inputs, including raw materials, labor and home components; oil and other energy prices; the effects of U.S. trade policies, including the imposition of tariffs and duties on homebuilding products and retaliatory measures taken by other countries; the effects of weather, including the occurrence of drought conditions in parts of the western United States; the risk of loss from earthquakes, volcanoes, fires, floods, droughts, windstorms, hurricanes, pest infestations and other natural disasters, and the risk of delays, reduced consumer demand, and shortages and price increases in labor or materials associated with such natural disasters; the risk of loss from acts of war, terrorism, civil unrest or public health emergencies, including outbreaks of contagious disease, such as COVID-19; transportation costs; federal and state tax policies; the effects of land use, environment and other governmental laws and regulations; legal proceedings or disputes and the adequacy of reserves; risks relating to any unforeseen changes to or effects on liabilities, future capital expenditures, revenues, expenses, earnings, synergies, indebtedness, financial condition, losses and future prospects; changes in accounting principles; risks related to unauthorized access to
our computer systems, theft of our homebuyers' confidential information or other forms of cyber-attack; and additional factors discussed under the
sections captioned "Risk Factors" included in our annual and quarterly reports filed with the Securities and Exchange Commission. The foregoing list is not exhaustive. New risk factors may emerge from time to time and it is not possible for management to predict all such risk factors or to assess the impact of such risk factors on our business. This presentation includes certain non-GAAP financial metrics, including adjusted homebuilding gross margin and net debt-to-net capital. These non-GAAP financial measures should be considered only as supplemental to, and not as superior to, financial measures prepared in accordance with GAAP. Please refer to the Supplemental Data and Reconciliation section of this presentation for a reconciliation of the non-GAAP financial measures included in this presentation to the most directly comparable financial measures prepared in accordance with GAAP.
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Management Team
Thomas Mitchell
President & COO
- Over 30 years of real estate and homebuilding experience
- Former EVP and Southern California Regional President at William Lyon Homes
Douglas Bauer | Glenn Keeler |
Chief Executive Officer | Chief Financial Officer |
• Over 30 years of real estate and | • Over 10 years of real estate |
homebuilding experience | and homebuilding experience |
• Former President and COO of | • CAO for Tri Pointe since 2014 |
William Lyon Homes |
Tri Pointe senior management has significant experience running a large, geographically diverse, growth-oriented public homebuilder. Deep managerial talent at each operating division with key local relationships supports dynamic tailored growth strategies.
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A diversified portfolio of markets
West Segment
Markets: San Francisco Bay Area, Inland
Empire, Orange County-Los Angeles,
Sacramento, San Diego, Phoenix, Las Vegas,
Seattle Metro Area
LTM Orders: 3,604
LTM Deliveries: 3,316
LTM HS Revenue: $2,477,392
LTM ASP: $747
Lots Owned or Controlled: 15,534
East Segment | |
Markets: Washington DC Metro Area, | |
Charlotte, Raleigh, Coastal Carolinas, | |
Orlando | |
LTM Orders: 831 | |
LTM Deliveries: 773 | |
LTM HS Revenue: $473,269 | |
LTM ASP: $612 | |
Lots Owned or Controlled: 5,720 | |
Central Segment | |
Markets: Houston, Austin, Dallas-Fort Worth, | |
Denver, Utah | |
LTM Orders: 1,882 | |
LTM Deliveries: 1,513 | |
LTM HS Revenue: $853,323 | |
LTM ASP: $564 | |
Lots Owned or Controlled: 12,899 | |
LTM Orders: 6,317 | LTM Deliveries: 5,602 |
LTM Home Sales ("HS") Revenue: $3,803,984 | LTM Average Sales Price ("ASP"): $679 |
Lots Owned or Controlled: 34,153 | |
2024 First
Quarter
Highlights
2024 First Quarter Highlights
- Net new home orders up 12% and absorption rate of 3.9 net new home orders per community per month
- New home deliveries up 31% to 1,393 with an average sales price of $659,000
Metric | 1Q24 | 1Q23 | % Change |
Orders | 1,814 | 1,619 | 12% |
• | Backlog units(1) up 35% to 2,741 homes and backlog dollar |
value (1) up 30% to $1.95 billion | |
• | Home sales revenue increased 20% to $918 million |
• | Homebuilding gross margin decreased 50 basis points to 23.0%. |
Adjusted homebuilding gross margin(2) increased by 20 basis | |
points to 26.4%. | |
• | SG&A expense decreased 40 basis points to 11.1% of home |
sales revenue | |
• | Net income available to common stockholders of $99 million, |
or $1.03 per diluted share, vs. $75 million, or $0.73 per diluted |
Deliveries | 1,393 | 1,065 |
ASP of Deliveries ($000) | $659 | $722 |
Ending Active Selling Communities | 156 | 136 |
Backlog (units)(1) | 2,741 | 2,026 |
Backlog (dollar value) ($mm)(1) | $1,951 | $1,503 |
Home Sales Revenue ($mm) | $918 | $768 |
HB Gross Margin | 23.0% | 23.5% |
31%
-9%
15%
35%
30%
20%
-50 bps
share | |
• | Repurchased 1.4 million shares for an aggregate dollar amount |
of $50 million | |
• | Ended with total liquidity of $1.6 billion, including cash and |
cash equivalents of $944 million and $703 million of availability | |
under our unsecured revolving credit facility |
Adjusted HB Gross Margin(2)
SG&A Expense (% of Home Sales Revenue)
Income Before Income Taxes ($mm)
Net Income Available to Common Stockholders ($mm)
EPS (Diluted)
26.4% 26.2%
11.1% 11.5%
$131 $103
$99 $75
$1.03 $.73
20 bps |
-40 bps |
27% |
33%
41%
- Backlog units and dollar value figures are as of March 31, 2024 and 2023, respectively
- See "Reconciliation of Non-GAAP Measures" in the appendix of this presentation
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First Quarter Results
Active Selling Communities and Absorption Rate Q1 2024 Results
Active Selling Communities and Absorption Rate
Active Selling Communities by Geography
As of and for the quarters ended March 31, 2023 and 2024
175 | 4.0 | 3.9 | 156 | 4.5 | |||||
4.0 | |||||||||
150 | 136 | ||||||||
3.5 | |||||||||
125 | |||||||||
3.0 | |||||||||
100 | 15% YOY | ||||||||
2.5 | |||||||||
75 | 2.0 | ||||||||
50 | Increase | 1.5 | |||||||
1.0 | |||||||||
25 | |||||||||
0.5 | |||||||||
0 | 0.0 | ||||||||
2023 | 2024 | ||||||||
Communities | Absorption Rate | ||||||||
As of March 31, 2024
Washington
4%
California
28%
Nevada 6%
Arizona
9%
Washington
D.C. Area(2)
4%
Carolinas(1)
8%
Colorado
7%
Texas
34%
Opened 20 new communities and closed 19 communities in Q1 2024
- Carolinas comprises North Carolina and South Carolina
(2) | Washington D.C. Area comprises Maryland, Virginia and the District of Columbia | 8 |
Net New Home Orders - Q1 2024 Results
Net New Home Orders
For the quarters ended March 31, 2023 and 2024
2,000 |
1,814 |
1,800 |
1,619 |
1,600 |
Net New Home Orders by Geography
For the quarter ended March 31, 2024
Washington
D.C. Area(2)
Washington 4%
Carolinas(1)
1,400 | ||
1,200 | YOY | |
1,000 | ||
12% | ||
800 | Increase | |
600 | ||
400 | ||
200 | ||
6%
California 34%
10%
Colorado
2%
Texas 27%
0 | |
2023 | 2024 |
Nevada | Arizona |
8% | |
9% | |
(1) Carolinas comprises North Carolina and South Carolina
(2) Washington D.C. Area comprises Maryland, Virginia and the District of Columbia
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Backlog - Units and Dollar Value - Q1 2024 Results
Backlog - Units and Dollar Value
As of March 31, 2023 and 2024 (dollars in thousands) | |||||||||||
3,000 | 2,741 | 2023 | 2024 | $2,500,000 | |||||||
2,500 | 2,026 | $1,950,590 | $2,000,000 | ||||||||
2,000 | YOY | $1,503,382 | YOY | $1,500,000 | |||||||
1,500 | |||||||||||
35% | 30% | $1,000,000 | |||||||||
1,000 | Increase | Increase | |||||||||
$500,000 | |||||||||||
500 | |||||||||||
$0 | |||||||||||
0 | |||||||||||
Units | $ Value | ||||||||||
$742K $712K Average Sales Price in Backlog
(1) Carolinas comprises North Carolina and South Carolina
(2) Washington D.C. Area comprises Maryland, Virginia and the District of Columbia
Backlog Dollar Value by Geography
As of March 31, 2024
Washington | |
Washington | D.C. Area(2) |
7% | 9% |
Carolinas(1) | |
8% | |
Colorado | |
2% | |
California | |
36% | |
Texas | |
23% | |
Arizona | |
Nevada | 10% |
5% |
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Disclaimer
TRI Pointe Group Inc. published this content on 25 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 April 2024 13:32:04 UTC.